Report: Sales, Rentals of Adult DVDs Fall in 2006

It appears packaged media's staying power in the adult entertainment industry could use a dose of Viagra.

Sales and rentals of adult DVDs in the U.S. topped $3.82 billion in 2006, down 12% from $4.28 billion in 2005.

Wholesale revenues of adult DVD and VHS dropped 2.6% to $980 million from $1 billion during the same period last year.

Total adult revenues topped $12.9 billion, up 2.4% from 2005.

The statistics were part of an annual report on the U.S. adult industry compiled by Adult Video News.

Not surprisingly, Internet-based distribution of adult content picked up the slack, representing more than $2.8 billion (22%) of adult entertainment revenue in 2006, compared to $3.6 billion (28%) for packaged media.

The study cited increased penetration of broadband connectivity within U.S. households for live streaming and video-on-demand content helped drive up Internet-based revenues more than 13%.